Correlation Between UnitedHealth Group and Kindred Healthcare
Can any of the company-specific risk be diversified away by investing in both UnitedHealth Group and Kindred Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining UnitedHealth Group and Kindred Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UnitedHealth Group Incorporated and Kindred Healthcare, you can compare the effects of market volatilities on UnitedHealth Group and Kindred Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in UnitedHealth Group with a short position of Kindred Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of UnitedHealth Group and Kindred Healthcare.
Diversification Opportunities for UnitedHealth Group and Kindred Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UnitedHealth and Kindred is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UnitedHealth Group Incorporate and Kindred Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kindred Healthcare and UnitedHealth Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on UnitedHealth Group Incorporated are associated (or correlated) with Kindred Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kindred Healthcare has no effect on the direction of UnitedHealth Group i.e., UnitedHealth Group and Kindred Healthcare go up and down completely randomly.
Pair Corralation between UnitedHealth Group and Kindred Healthcare
If you would invest 49,169 in UnitedHealth Group Incorporated on January 21, 2024 and sell it today you would earn a total of 944.00 from holding UnitedHealth Group Incorporated or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UnitedHealth Group Incorporate vs. Kindred Healthcare
Performance |
| Timeline |
| UnitedHealth Group |
| Kindred Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UnitedHealth Group and Kindred Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UnitedHealth Group and Kindred Healthcare
The main advantage of trading using opposite UnitedHealth Group and Kindred Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UnitedHealth Group position performs unexpectedly, Kindred Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kindred Healthcare will offset losses from the drop in Kindred Healthcare's long position.| UnitedHealth Group vs. Certara | UnitedHealth Group vs. HealthStream | UnitedHealth Group vs. Evolent Health | UnitedHealth Group vs. Streamline Health Solutions |
| Kindred Healthcare vs. Deluxe | Kindred Healthcare vs. NETGEAR | Kindred Healthcare vs. Dolphin Entertainment | Kindred Healthcare vs. Lifevantage |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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